Why do developing countries often find macroeconomic policy


Problem

1. Explain why it is easier for a country to revalue its currency if it has a fully employed economy and faces inflationary pressures than if it is in a recession. Why is it similarly easier for a country to devalue if it has a recession than if it is fully employed?

2. Why do developing countries often find the macroeconomic policy requirements for the success of a devaluation to be particularly painful and politically unpopular?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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International Economics: Why do developing countries often find macroeconomic policy
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